Legal betting falls short
The New Zealand government is planning to levy fees on offshore gaming companies, according to a report on iGaming.com. Funds generated from the fees could be used by the Totaliser Agency Board to expand its product line and get more of the estimated $58 million in profits on racing and sports bets that are reaped each year by offshore companies.
The TAB says the number of Kiwis betting online with foreign competitors has doubled since 2010 to 40,000. According to the Offshore Racing & Sports Betting, New Zealanders prefer to bet offshore because foreign gaming companies offer more and better products with superior odds, and also have been more effective in luring patrons. To be more competitive, the TAB launched a mobile app, which is now its best growing channel, reported iGaming.com. But its technology still needs improvement, the TAB concedes.
The body has suggested ending the current ban on in-race betting and make it “consistent with in-play betting on sports matches.” It is also considering allowing bets on more sports such as mixed martial arts, and allowing the NZRB to introduce bets on events other than sports or racing.
It has also recommended assessing an intellectual property fee on offshore gaming sites that accept bets in New Zealand. A 2 percent fee could generate $16.6 million revenue in its first year, the TAB estimates. Presently, Kiwis are betting about $1 billion a year offshore.
